Was No Tax on Tips Bill Passed? House Republican Budget Resolution Explained

House Republicans took a crucial step towards implementing Donald Trump's "big, beautiful bill" on Tuesday, narrowly passing a budget resolution supporting his legislative agenda with a 217 to 215 vote.

While a series of posts on social media claimed that Congress passed Trump's promised "no tax on tips" bill, the framework only sets the way for lawmakers to move forward with such plans—but includes no policy prescription.

Why It Matters

The passage of the budget resolution means that the House and the Senate can now negotiate how to move forward to implement Trump's promised legislation, which would extend tax cuts set to expire and introduce spending reductions across the federal government.

The resolution is seeking $4.5 trillion in tax breaks and $2 trillion in spending cuts over the next 10 years, measures that have met opposition from Democrats and made some Republicans uneasy. All House Democrats opposed the passage of the bill on Tuesday, while only one Republican voted against it—Rep. Thomas Massie of Kentucky.

Moderate Republicans are cautious about implementing the kind of tax cuts and spending cuts Trump wants, fearing they might increase the country's debt while not saving enough money and force lawmakers to slash social safety net programs like Medicaid.

What to Know

The budget resolution does not contain a bill eliminating taxes on tips, as some have mistakenly claimed on social media. In fact, it contains no policy prescription at all, but it does give direction for what legislators should try to achieve and has officially kickstarted the process of passing through Trump's promised legislation, including ending taxes on tips.

The framework lays out committee assignments to slash between $1.5 trillion and $2 trillion, and allows for the Ways and Means Committee to increase the deficit by up to $4.5 trillion while drafting Trump's promised tax cuts. However, it does not indicate which taxes should be reduced.

The president wants Congress to act to extend its 2017 Tax Cuts and Jobs Act, which is set to expire at the end of the year; he also wants to add new tax policies, including eliminating taxes on tips, Social Security benefits and overtime wages. But extending the 2017 tax law alone will cost roughly $4 trillion over a decade, as reported by the New York Times, leaving Republican lawmakers in a tough spot to decide which other tax breaks to include in future legislation.

The policies promised by Trump during his 2024 presidential campaign are going to be costly, according to experts. The nonpartisan Committee for a Responsible Federal Budget estimated that the package could add up to $11.25 trillion over 10 years to the country's existing $36.2 trillion in debt. Ending taxes on tips alone could add between $100 billion and $550 billion in debt over the next decade.

While this budget resolution was ultimately passed successfully, House Speaker Mike Johnson had to hold on to his narrow majority in Congress with tooth and nail to keep Republicans in line, as the GOP can't afford to lose more than one vote. More opposition and bitter infighting is expected among the ranks of the GOP as they decide which federal programs to shrink to back Trump's massive tax cuts.

What People Are Saying

House Speaker Johnson said after the budget resolution was passed on Tuesday: "House Republicans moved Congress closer to delivering on President Trump's full America First agenda, not just parts of it."

Adam Michel, the director of tax policy studies at the libertarian Cato Institute, told the New York Post: "The resolution is stronger than when it started. It now includes a trigger that ties the size of the tax cuts to the relevant committee's ability to meet or exceed the $2 trillion spending cut target. The House budget would benefit from deeper spending cuts, which are the only way to stabilize the national debt, protect Americans from higher taxes, and meet ambitious economic growth targets."

House Democratic Leader Hakeem Jeffries said on the steps of the Capitol, as reported by the Associated Press: "Our very way of life as a country is under assault."

Massie, the only Republican in Congress to vote against the budget resolution, wrote on X: "The GOP budget extends the 5 yr. tax holiday we've been enjoying, but because it doesn't cut spending much, it increases the deficit by over $300 billion/yr. compared to letting tax cuts expire. Over 10 years, this budget will add $20 trillion to US debt."

What's Next

It would take weeks before any of Trump's promises—including tax breaks—become law, with any bill having to go through the House and the Senate before being finalized. The two chambers have passed their own versions of the legislation, and it's still to be seen which one they would agree on.

The resolution passed on Tuesday does not specify which tax proposals will be included, and the "no tax on tips" policy remains under consideration.